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Thursday, August 18, 2011

1. In economic field, very often, the term ?Price Index? is used. If the Price Index in May 1985 was 355, then what does it mean?
A) The prices on the average were more than three and a half times as much.
B) The prices were 255 per cent higher than what they were in 1970-71 (the earlier base year).
C) As compared to the earlier base year, May 1985 was full of various commodities and the supply was 300 times better than the earlier years.
Which of these statements is/are true ?
Only A Only B Only C Only A & B None of these

2. Various measures are used by the State to control the inflation. These can be
A) Price control
B) Monetary measures
C) Fiscal measures
Which of these is/are known as the suppressed inflation ?
Only A Only B Only C Both A & B None of these

3. The High Court of which of the following States set aside the decision of the State Government to overturn the creation of nine districts and four commissioner divisions (created by the earlier Government) ?
Rajasthan Orissa Himachal Pradesh Tamil Nadu Uttar Pradesh

4. The Government of India recently issued norms for Indian Depository Receipts (IDRs). Which of the following is NOT TRUE in this regard ?
The companies would have a pre-issue paid up capital and free reserves of at least 500 million US $. Average turnover of the company should be 500 million US $. The norm of average turnover of 500 million US $ should be during the three preceding years of financial performance. The company should have declared a dividend of not less than 10% during the last five years. All such companies need prior nod of SEBI.

5. Who among the following has issued various accounting standards to be followed by the various companies in India?
Registrar of Companies Ministry of Finance, Government of India Accounting Standards Board of ICAI Indian Bureau of Standards World Trade Organisation (WTO)

6. How much amount an individual resident can now borrow from the close relatives residing outside India (As per new RBI norms)?
US $ 100000 only or its equivalent US $ 150000 only or its equivalent US $ 200000 only or its equivalent US $ 250000 only or its equivalent None of these

7. Growth of credit in agriculture, despite its priority sector status, has remained a persistent problem in the economy. According to the RBI, domestic banks must allocate what percent of their advances to the agricultural sector (including direct and indirect finances)?
8% 12% 15% 18% None of these

8. In July 2003, the banks were asked to reduce their lending rate to agricultural credit to he extent of ? (for loans below Rs. 50,000).
6.5% 7.5% 9% 10% None of these

9. In the financial transaction of the Government, we often hear a term ?Deficit Financing?. Deficit Financing is
A) Practised whenever Government expenditure exceeds the receipts from the public.
B) That part of the Government expenditure which is met by drawing down the cash balance of the Government held in RBI or in State treasuries.
C) That part of the Government expenditure which is required to be compensated by printing new notes/supply of fresh currency notes in the market. Which of these statements is/are correct?
Only A Only A & B Only C Only B None of these

10. In commercial and trade world, very often, we hear a term ?Free Trade?. What does it really mean?
A) It means no restriction on the movement of goods between two countries or a group of countries.
B) It means no custom duty or any other tax or duty on the goods supplied to each other by the countries.
C) It means exchange of goods between the countries to overcome shortage of particular type of goods.
D) It means a particular nation is allowed to sell its goods all over the world without any restriction on the quantity.
Which of these statements is/are correct?
Only A Only B & C Only C & D Only C & A Only D